In addition to last week's signing of contracts for seven
road sections in Hebei Province regarding 179 km of roads
connecting Tangshan City to Jingtang Port, Cheung Kong Infrastructure
Holdings Limited (CKI) has signed new contracts regarding
two Zhumadian sections of China's National Highway 107, located
in Henan Province. The signing ceremony, held yesterday (June
25, 1997) in Zhengzhou, the capital city of Henan Province,
marked CKI's first move into this central province of China.

Totalling 113 km in length, the Zhumadian sections are important
links of China's well-known National Highway 107, a main artery
connecting the Northern and Southern regions of China and
an essential part of the PRC's highway network.

The new contracts represent a total investment of RMB 580
million, of which CKI has a 66% interest - for a total CKI
investment of RMB 383 million. The joint venture period will
last for 27 years. As these road sections are currently operational,
they are ready to generate revenue for CKI.

Located in the Central region of the country, Zhumadian is
a main transportation hub for the region - and a pass-through
point for both the Jingguang Railway and National Highway
107.

Zhumadian is rich in cultural and historical significance.
Due to its central location, it was a well-known horse changing
station for mounted couriers in the past; hence the name Zhumadian,
which - literally translated - means "changing horse
point." Its location at the crossroads of China made
Zhumadian a natural gathering point for artists, poets and
businessmen alike; as well as a gateway for travellers heading
both North and South.

With the signing of these Henan road contracts, CKI's investment
in China now extends from Guangdong Province in the South
and Liaoning/Hebei Provinces in the North to Henan Province
in the Central region. These contracts also represent a significant
start to CKI's investments in the infrastructure development
of Henan Province.

According to Mr H L Kam, Group Managing Director of Cheung
Kong Infrastructure Holdings Limited, "CKI is currently
in negotiations for a number of additional infrastructure
projects in Henan Province, and intends to develop a solid
core of projects in line with our clustering strategy."

"There are several factors that make Henan Province
stand out as an attractive region for infrastructure investment:
its geographical advantages and large population, as well
as the Chinese Government's initiative to increase the profile
of the country's Central region," continued Mr Kam.

Mr Kam concluded, "CKI's involvement in the Zhumadian
road projects is a milestone for CKI's investment in the Central
region of the country. The fact that these contract signings
are taking place only a few days before the return of Hong
Kong to China at the gateway city of Zhumadian - a city so
rich in culture historical significance - is particularly
meaningful."

With the addition of these new road contracts, CKI now has
a total of 712 km of roads in its PRC transportation investment
portfolio, representing a total road and bridge investment
of approximately HK$5.8 billion.